Management and Organizational Studies 2277A/B Chapter 1-9: 2277 Textbook Notes

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2277A/B
• Professor: Barry Hawn

Document Summary

Chapter 1 overview of a financial plan. Personal finance (personal financial planning): process of planning your spending, financing, and investing. 1 activities while taking into account uncontrollable events in order to optimize your financial situation. Opportunity cost: what each spending decision has; represents what you give up as a result of that decision. The personal financial planning process will enable you to make informed decisions about your spending, saving, financing, and investing. Understanding of personal finance allows you to judge the guidance of financial advisors and determine whether their advice is in your best interest over their best interest: ex no investment can be guaranteed to increase in value. A complete financial plan contains personal finance decisions related to 5 key components: budgeting and tax planning, financing your purchases, protecting your assets and income (insurance, investing your money, planning your retirement and estate. A plan for your budgeting and tax planning.